Berkshire Hills Bancorp Reports Fourth-quarter Results
BOSTON — Berkshire Hills Bancorp Inc. reported GAAP net income of $14 million, or $0.31 per common share, in the fourth quarter of 2018. The non-GAAP measure of core earnings totaled $29 million, or $0.63 per share, during this period.
Both GAAP and core EPS totaled $0.70 in the prior quarter. The benefit of higher net interest income in the fourth quarter was offset by lower fee income and higher expense. Core EPS is net of non-core charges, which totaled $0.32 per share after tax in the fourth quarter and included merger-related expenses and other items, including costs related to the restructuring of the company’s banking systems provider relationships.
Fourth-quarter financial highlights included 2% loan and deposit growth, 3.41% net interest margin, 60.3% efficiency ratio, 0.17% net loan charge-offs/average loans, and 0.28% non-performing assets/assets.
“Core earnings for the year were in line with our original plan, and fourth quarter core earnings also met our expectations before the impact of the government shutdown on SBA-related fee revenue,” CEO Richard Marotta said. “During 2018, our teams made great strides integrating our Eastern Massachusetts acquisition and developing organic business across our footprint. Loan growth was consistent throughout the year, and deposit balances increased with the benefit of higher activity in the fourth quarter. Our internal capital generation supported our balance-sheet growth, and our credit performance and asset quality remain strong.”
The board of directors voted to increase the quarterly cash dividend by $0.01, or 5%, to $0.23 per common share to shareholders of record at the close of business on Feb. 14, 2019, payable on Feb. 28, 2019. The dividend equates to a 3.4% annualized yield based on the $26.97 closing price of Berkshire Hills Bancorp at year-end 2018. Effective on the same dates, the board also increased the quarterly cash dividend on preferred stock by 5% to $0.46 per share.
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